Anti-money laundering (AML) software refers to an umbrella system that includes various controls that the financial sector and other related sectors use to support the requirements of ever-tightening legislation from regulatory bodies. Its primary purpose is to detect and prevent strange activity, eradicate false positives, and assist organizations in reporting suspicious transactions.
Anomalies such as a sudden or significant increase in funds or perhaps a large withdrawal are warning signals that the software should identify. However, it doesn’t mean that the software won’t flag smaller transactions. If the criteria are met, it could be regarded as suspicious.
A typical example is someone who avoids detection by making multiple small deposits within a brief time. They’re ultimately trying to rid themselves of the larger amount but using these strategies to bypass the system. The software is vital in identifying these transactions and blacklists names and countries that are considered to be hostile towards the host nation.
After the report is produced, a human investigates and evaluates the flag, giving the customer a chance to explain the transaction. The flag is dismissed if there is a legitimate reason for the transaction.
Table of Contents
- Anti-money Laundering Software Features
- Clear View KYC
- ML Verify
- SAS anti-money laundering
- NICE Actimize
- AML Manager by Fiserv
- Oracle Financial Crime and Compliance management
- Token of Trust
Anti-money Laundering Software Features
Anti-money laundering software comprises several features. However, these are the five most common features you should look for in this type of software.
Real-Time Transaction Monitoring
As the name suggests, this feature is crucial for identifying suspicious patterns in customer transactions. It also uses account history and information about a specific profile to determine if a transaction is suspicious. This aspect of the software lets you know how much money is passing through your systems at any time. It will immediately raise a flag when a transaction is an anomaly.
For a business, it’s essential to remain compliant with the relevant regulations from financial authorities. You can use AML software in your daily implementation of compliance demands. The software’s data management capabilities help record details of staff training and scheduled audits and keep track of reports you’ve submitted to the authorities.
You can centralize your case management through the AML software by creating a single resource on the platform. The program allows you to consolidate events from different monitoring solutions into one space. As a result, you have an in-depth view of your customers, transactions, related events, and other relevant data. The software can deliver information in graphs and other visualizations to identify a pattern of strange activity. Furthermore, it enables you to respond to regulators or law enforcement with proper investigative analysis.
The AML software will analyze your business and evaluate its risk of falling prey to financial crime. It can guide you toward the aspects of your operation that are potential loopholes for money laundering or financing of terror groups. It will provide this information through monitoring and assessing known vulnerabilities known as Key Risk Indicators.
Suspicious Activity Reports
The system will produce an SAR (Suspicious Activity Report) whenever you see a flag raised by the anti-money laundering software.
Below is a list of the best anti-money laundering software available based on this criteria:
Clear View KYC is ideal for high-risk industries, including casinos, banking, and (MSBs) Money Service Businesses, such as exchange office agencies or dealers. It allows you to connect your systems to the backend cloud, where you can remain compliant.
It performs KYC (Know Your Customer) screening as the backend API (Application Programming Interface) browses names of both individuals and entities to determine if they’re on the most recent sanctions watchlists. These lists are automatically updated every day, keeping your business safe.
Further to this list, you gain access to the PEP (Politically Exposed Persons) and HIO (Head of International Organizations) list. These checks have become a requirement in some countries.
Sometimes it’s impossible to have the correct spelling of a person or organization’s name. In this case, the software’s Fuzzy Search will find results based on imprecise matches or variations in spelling.
The integration of this software is seamless and requires minimal configuration.
This software is the market leader in eradicating financial crime for Fintechs, financial institutions, merchants, and processors. It offers all the features you need to prevent fraud and enables you to comply with anti-money laundering regulations.
It has complete fraud management and reporting platforms, standard self-service rules, and scenarios. You can introduce third-party integrations and speed up your reporting to the authorities through pre-built SAR filings.
Feedzai is used by 80% of Fortune 500 companies, including Standard Chartered, Citi, Santander, and ABN-AMRO.
Using this software, you can sign customers up faster with a more accurate risk assessment. It allows you to identify early warning signs of fraud that other solutions may miss.
It will silently alert you of fraudulent activity so that you can protect your customers from credential and identity theft across all interactions.
Trulioo is a global online identity verification service that allows you to verify your customers from around the world. The software developer believes that everyone wins when you can confirm their identity. The results are:
- Underbanked people gain access to financial institutions.
- People working abroad can send money home to families.
- Individuals from different countries can trust each other with the sales of goods and services.
The software allows you to over 5 billion people and 330 million businesses around the globe. With this AML software, you can confirm data against over 400 reliable sources from over 195 countries.
Trulioo’s primary products deal with:
- Compare the data you have against independent sources.
- Assist your Know Your Customers processes.
- Increase your customer base.
ID Document Verification
- Conduct document checks.
- Authenticate users with selfies.
- Confirm business owner and details.
- Acquire official company files.
Streamline your AML compliance alongside the onboarding process of your new clients. It does everything from staff training recordkeeping to ID verification. This software provides a single dashboard to access the information you require.
The dashboard makes it easier to view which clients remain unverified and what remains outstanding to validate them. The good news is you can import your client list from third-party software such as a spreadsheet.
Some of the features that stand out include:
- Customizing your KYC demands regarding which documents to use depending on your business and the client’s risk profile.
- The client portal is simple and intuitive as your clients respond to document requests and other requirements that form part of your KYC compliance.
- The software quickly and digitally verifies your client’s ID based on private and public data repositories.
- You can document your staff’s training, an essential money laundering regulation. The software will schedule and record details of these training sessions.
- Using ML Verify allows you to group specific clients based on their risk profiles, and you can pull together in-depth reports of suspicious money laundering activity.
Records show that SAS has already helped financial institutions obtain more than 90% accuracy while reducing false positives by up to 80%. Using this software enables you to look at the broader picture of hidden money laundering networks.
Advanced analytics can assist with looking at a customer through multiple references and sources, grouping their inconsistencies and viewing them with other or similar entities.
SAS Anti-money laundering is a comprehensive solution that promotes transaction monitoring, watchlist screening of customers, onboarding of new clients, and customer due diligence.
You have access to all types of data at a centralized point. Whether you need transaction data, nonmonetary event data, geographic data, risk lists, third-party data, or other customer data, you can have it ready for analysis through this software.
The platform is relatively swift and nimble since it unites the analytical tasks such as data access, preparation, machine learning, interactive exploration, AI, and development to deployment activities under one cohesive space.
The NICE Actimize software aims to modernize the AML and KYC space by using AI, machine learning, robotic process automation, and domain expertise to assist businesses in fighting money laundering. The technology you adopt must be contextual and adaptable to understand your customer and their risk better.
These are some of the features you can expect from this solution:
Suspicious Activity Monitoring (SAM), Customer Due Diligence, Sanctions Screening, X-Sight Entity Risk, Cryptocurrency Intelligence, Trade-Based Money Laundering, Suspicious Transaction Activity Reporting (STAR), Currency Transaction Reporting (CTR), AML Essentials, and Xceed: Integrated FRAML.
AML Risk Manager will reduce risk and improve operational efficiency by accurately detecting and preventing money laundering. As your organization expands to meet the demands of your consumers, so do your digital service offerings. It’s the ideal scenario for cyber criminals who are becoming more sophisticated in their attempts to defraud businesses.
Apart from being a victim, you don’t want to be on the receiving end of a noncompliance fine and the reputational damage you may suffer. You will find specific solutions for financial institutions, investment firms, and insurance companies.
When you opt for this software, you can expect the following:
- Collect crucial KYC information to screen them for their potential risk. Ongoing monitoring and due diligence ensure that you won’t fall victim.
- Use enhanced analytics to decrease false positives and promote proactive detection and response.
- Mitigate compliance risk with some degree of flexibility that allows you to adapt to regulatory changes, speed up the onboarding process, and constantly optimize operational efficiencies.
Protect your financial institution and remain compliant with a compelling suite of anti-money laundering solutions.
You can detect money laundering far easier using software that can identify unusual customer behavior and strange money movements.
Streamline the reporting process while keeping your costs down. The system will generate the necessary reports to check your compliance with global reporting guidelines and regulations.
Due to the accuracy of the data, you can spend time investigating and uncovering these underground networks instead of wasting your time browsing through a bunch of false negatives.
KYC regulations are stringent, but with Oracle, you can quickly assess risks and weigh your customers against global watchlists and sanctions.
Token of Trust’s primary aim is to provide a complete solution to improve compliance regarding AML and KYC. Additionally, it acts as a powerful ID verification tool and delivers important screening data for reviewing manually.
On the feature front, you get age verification, PEP, cross-checks for sanctions, and all the essential tools for completing regulation customers due to diligence requirements.
You can keep your customers safe while onboarding with quick identity screening upon checkout. The software uses distinct characteristics to identify and verify your customers quickly.
It is advisable to build trust with your stakeholders, and one of the ways to do that is to capture and corroborate customer information in a heartbeat.
The software can adapt to innovation and transformation.
This software is a three-in-one solution. It’s fast, flexible, and transparent, but perhaps, more importantly, it covers you in terms of compliance so you can confidently scale your business.
If you’re looking for reputable software, Salv was designed by the same people that put together Skype. Sun Finance, TrueLayer, and LHV are examples of companies that have trusted Salv for their AML and KYC solutions.
Whether you’re looking for transaction or customer screening, you can get it done either in real-time or offline as often as you wish.
Initially, Salv will set you up in terms of your first SQL-based scenario, but from there, you’ll have access to the tools. The platform will help you replace manual tasks so you can easily keep track of various working sheets.
Hawk.AI claims to be the future of anti-money laundering surveillance as it can manage your risk and control your processes without scaling your team. Some of the largest names in American business have adopted this software, including BB America’s Bank and North American Bancard.
With this program, you can screen payments from parties against the sanctions and country list in real-time.
You can monitor transactions as they occur to check for anomalies against a set of rules together with behavioral analysis.
Ensure that you’ve screened customers against various lists such as sanctions, PEP, adverse media reports, and specific watchlists for onboarding and throughout.
Use both internal and external data to determine customer risk profiles.